Ramsay Health CareASX:RHC +1.21%87 ROC (Joel Greenblatt) % is 6.89% as of Dec. 2025, which is 22% below its 10-year median of 8.86. GuruFocus rates ASX:RHC with a GF Score™ of 87/100 and a GF Value™ of A$50.77 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 670 Healthcare Providers & Services companies, Ramsay Health Care ranks worse than 58.81% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Ramsay Health Care's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 6.89%.
The historical rank and industry rank for Ramsay Health Care's ROC (Joel Greenblatt) % or its related term are showing as below:
ASX:RHC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.1 Med: 8.86 Max: 23.36
Current: 7.01
During the past 13 years, Ramsay Health Care's highest ROC (Joel Greenblatt) % was 23.36%. The lowest was 4.10%. And the median was 8.86%.
ASX:RHC's ROC (Joel Greenblatt) % is ranked worse than 58.81% of 670
companies
in the Healthcare Providers & Services industry
Industry Median: 12.485
vs ASX:RHC: 7.01
Ramsay Health Care's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -11.30% per year.
Ramsay Health Care (ASX:RHC) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Ramsay Health Care ROC (Joel Greenblatt) % Related Terms
Ramsay Health Care ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Ramsay Health Care's ROC (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:RHC vs HCA, THC, DVA: ROC (Joel Greenblatt) % Comparison
For the Medical Care Facilities subindustry, Ramsay Health Care's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ramsay Health Care ROC (Joel Greenblatt) % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Ramsay Health Care's ROC (Joel Greenblatt) % falls into.
Ramsay Health Care ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a ROC (Joel Greenblatt) % of 6.89% mean?
Ramsay Health Care (ASX:RHC) has a ROC (Joel Greenblatt) % of 6.89% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ramsay Health Care and its competitors. This is 22% below median its historical median of 8.86. Over the past decade, Ramsay Health Care's ROC (Joel Greenblatt) % has ranged from 4.10 to 23.36. According to the industry distribution chart, Ramsay Health Care ranks #394 out of 670 companies in the Healthcare Providers & Services industry, placing it in the top 58.8%.
Is Ramsay Health Care's ROC (Joel Greenblatt) % too high?
Ramsay Health Care's current ROC (Joel Greenblatt) % of 6.89% is 22% below median its 10-year median of 8.86. Over the past 10 years, this metric has ranged from a low of 4.10 to a high of 23.36. The Healthcare Providers & Services industry median ROC (Joel Greenblatt) % is 12.49. Ramsay Health Care's value of 6.89% is 44.8% below this industry median. Based on the distribution chart, Ramsay Health Care ranks #394 out of 670 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Ramsay Health Care has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramsay Health Care's ROC (Joel Greenblatt) % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Ramsay Health Care ranks #394 out of 670 companies for ROC (Joel Greenblatt) %. This places Ramsay Health Care in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 12.49. Ramsay Health Care's value of 6.89% is 44.8% below this benchmark. Historically, Ramsay Health Care's own ROC (Joel Greenblatt) % has ranged from 4.10 to 23.36 over the past decade. While the company's 10-year median is 8.86 vs. the industry median of 12.49, Ramsay Health Care has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Healthcare Providers & Services company?
The median ROC (Joel Greenblatt) % among Healthcare Providers & Services companies is 12.49, based on 670 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ramsay Health Care's current ROC (Joel Greenblatt) % of 6.89% is 44.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ramsay Health Care and its competitors. For the Healthcare Providers & Services industry, the median ROC (Joel Greenblatt) % is 12.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramsay Health Care's current ROC (Joel Greenblatt) % is 6.89%, which is 22% below median its own 10-year median of 8.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramsay Health Care stock overvalued right now?
Based on GuruFocus' analysis, Ramsay Health Care (ASX:RHC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$50.77, compared to a current price of A$44.16 — trading 13% below its estimated fair value. The current ROC (Joel Greenblatt) % is 6.89%, which is 22% below median its 10-year median of 8.86 and 44.8% below the Healthcare Providers & Services industry median of 12.49. Ramsay Health Care's overall GF Score™ is 87/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Ramsay Health Care (ASX:RHC), the current ROC (Joel Greenblatt) % is 6.89% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ramsay Health Care (ASX:RHC) Overvalued in 2026?
Based on GuruFocus' analysis, Ramsay Health Care stock appears to be undervalued.
The current stock price of A$44.16 is trading 13% below its estimated GF Value™ of A$50.77.
GuruFocus considers Ramsay Health Care to be Modestly Undervalued.
Key valuation signals for ASX:RHC:
ROC (Joel Greenblatt) %: 6.89% (22% below median its 10-year median of 8.86)
GF Value™: A$50.77 vs. price of A$44.16 (13% below fair value)
Industry Position: 44.8% below the Healthcare Providers & Services median (#394 of 670)
No single metric tells the full story. See the ASX:RHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramsay Health Care is one of the largest private healthcare providers in the world, with more than 500 sites across about eight countries. The key markets in which it operates are Australia, France, the UK, and Sweden. It is the largest private hospital group in each of these markets except for the UK, where it is the largest independent supplier to the NHS. Ramsay Santé, which operates the European regions other than the UK, is a 53%-owned subsidiary of Ramsay Health Care. The company typically earns about two-thirds of consolidated earnings in Australia. Ramsay Health Care undertakes both private and publicly funded healthcare.
87GF Score
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